Greaves Cotton rises after securing a USD 220 million funding from global investor Abdul Latif Jameel

The proceeds from this funding shall be utilized by Greaves Cotton’s electric mobility business to develop new products, associated technologies, and build brand awareness.

Greaves Cotton Ltd, an S&P BSE 500 company, announced this morning that it has secured funding for a total of USD 220 million from Abdul Latif Jameel for Greaves Electric Mobility (GEM), the electric mobility business of the company.  

GEM caters to the E2W/E3W ecosystem in India. It manufactures electric two-wheelers under the brand name Ampere Vehicles and three-wheeler vehicles (E-Auto and E-Rickshaw) under the brands Ele and Teja. 

Abdul Latif Jameel is a private family-owned global investor and operator that is owned by the Jameel Family. The association with this investor is of significant importance as the investor has extensive global experience in the automotive market. It has been one of the leading independent distributors of Toyota products for over 65 years. Moreover, the Jameel family are early-stage investors and the third-largest shareholder of Rivian, a US based electric vehicle manufacturer. The family are also investors in US venture-backed aerospace company Joby Aviation, via their global investment arm JIMCO. 

As per Greaves Cotton’s press release, Abdul Latif Jameel shall make an initial investment of USD 150 million, which is approximately Rs 1160 crore for a 35.8 per cent stake on a fully diluted basis in GEM. The latter also has an option to draw down an additional investment of USD 70 million within a period of 12 months.  

GEM shall utilize the proceeds from this funding to develop new products, associated technologies, and build brand awareness with an intent to transform the company into a leading global EV manufacturer.  

At 2.25 pm, the shares of Greaves Cotton Ltd were trading at Rs 165.70, an increase of 2.44 per cent from the previous closing price of Rs 161.75 on BSE.